It was bound to happen sooner rather than later, but it seems as though we might just be on the cusp of a new generation of games consoles...

Ubisoft Montreal is hard at work on 'target boxes' based on the intended specifications of Microsoft’s Xbox 360 successor, according to an Edge source. Delivery of the first iteration of genuine devkits, running custom hardware, is expected to reach studios before Christmas, and all signs point to the finalised console arriving at retail in late 2012.

Ubisoft’s teams are said to be working on PCs containing off-the-shelf components provided by Microsoft, and it’s our understanding that several other major developers, including certain EA studios, are also in possession of these target boxes. While our source was unable to share precise specifications, it is believed that AMD is providing the bespoke GPU solution for Microsoft’s console. A Ubisoft spokesperson said: "We do not comment on rumour and speculation."

We can also reveal that one major Sony-owned studio has now ceased PlayStation 3 development, its entire focus having shifted to the console’s successor. The studio is also said to have been involved in the development process of the graphics technology adopted by Sony’s new hardware.